This is a partnered guest post.
There comes a point in any parent’s life when it’s time to trust your kids to spend their own money – and spend it wisely. But how do you teach your child to enjoy the benefits of managing their own money without spending it all in one go or on things that don’t really matter?
One of the most important and easy ways to teach them about money managing is to involve them in your shopping. When you go shopping for essential items, let them hold onto the shopping list. Ask them what is next, bring them to the appropriate shelf and teach them how to find a brand that gives good value for money rather than just picking up the first one.
While you’re out shopping together, always to try to pay with cash. This will teach them that money is something that runs out. It is a finite resource. They’ll see how the money becomes less, whereas with a credit card, it creates the notion that endless shopping is possible. If you have coupons, you can let them hang onto these and even redeem them on their own. They will feel what it’s like to pay for something and understand that coupons can save a lot of money when used smartly.
While you’re browsing, try and stay focused on only purchasing the things that the family needs. If you let shopping seem like a fun way to pass the time or something to do when you’re bored, your children might fall into a habit of consumerism. Buying unnecessary items will become a way of relaxing or passing the time. Rather teach them that shopping is something you do out of necessity and window shopping is a fun way to relax.
When it comes to online shopping, there are other ways to teach your child good money behavior. Even when it comes to shopping for leisure items. Take a teen-focused website Audible.com, for example. Enjoy browsing through the selection of audio books with you kids, but let them choose one or two books instead of purchasing everything that they’re remotely interested in. You can also discuss with them whether a full membership or once-off purchases offer more value for money.
When it comes to paying, you can use the Audible.com coupons instead of paying by credit card. Let them hold the coupon and recite the coupon codes for Audible.com when paying. This will teach them that credit cards aren’t the only way to buy items off the internet. When you’re buying less-essential items like these, emphasize the fact that you’re buying something special so that leisure shopping doesn’t become a way of passing the time.
By doing these simple things with your child from a young age, your habits will become theirs one day. Set a good example of budgeting and smart-shopping and be open with your kids about money spending. Once they understand the difference between essential and non-essential items you can enjoy buying the occasional leisure items together as well.